Volume 111, No. 13
Upcoming DealersEdge webinars
Dealers are encouraged to take advantage of a partnership between The CATA and DealersEdge to provide
high-quality training and informational webinars to dealers at a significantly discounted rate.
The rate for CATA members for the weekly presentations is $149, or half what is charged to viewers who do
not subscribe to DealersEdge. And to help introduce a
new audience to them, DealersEdge will permit CATA
members to view one of the next three webinars free.
Webinars premiere on a near-weekly basis.
Even for dealers who hold an annual membership
with DealersEdge, the new relationship with the CATA
represents a savings, because DealersEdge offers its
webinars to its own members for $198. Regular annual
membership fees are $397, and normal fees are $298 for
non-DealersEdge members.
Once purchased, DealersEdge webinars and accompanying PDF files can be downloaded and viewed
later—and repeatedly. No matter how many people watch
at your location, each connection costs a CATA member
just $149. A telephone connection is not needed; and the
fee includes both PowerPoint slides and audio.
To register for any of the DealersEdge webinars, go
to www.cata.info. On the tan bar across the top of the
screen, click on Education/Careers and follow the dropdown menu to CATA-DealersEdge webinars.
Coming topics:
Premiering Thursday, July 10 at 12 p.m. CDT
“Update on the Latest Version of Obamacare/
ACA: Actions Car Dealers Need to Take Soon!” Get
an action plan for organizing your dealership’s key compliance activities, as many need attention between now
See Webinars, Page 2
July 7, 2014
How much profit do customers
believe dealers make on a sale?
Consumers believe car
dealers make about five times
more profit on the sale of a
new car than they actually
do, based on a survey commissioned by TrueCar, Inc.,
a negotiation-free car buying
and selling platform.
The finding comes as a
portion of the results of
the inaugural TrueCar Buyer
Study, which examines the
“trust gap” between consumers and dealers. While
buyers fear they will overpay
on their new-car purchases
and believe dealers make
about 20 percent profit on
the sale of a $30,000 new car,
dealer profit margins actually
are shrinking, down from
5.5 percent in 2003 to 3.8
percent in 2013, according
to the National Automobile
Dealers Association.
TrueCar’s survey also
showed that consumers believe that a “fair” profit margin on a new-car sale would
range from 10 percent to 12
percent. In addition, if told
that dealers theoretically
made no profit on new-car
See Profit, Page 2
Canada enacts new ‘anti-spam’ bill
New Canadian “antispam” legislation (CASL)
enacted July 1 prohibits a
commercial email, text or
other electronic message to
a Canadian recipient without
prior express permission. In
addition, the Canadian law
requires any such messages
to prominently identify the
sender and include contact
information, along with a
way to unsubscribe.
What is deemed to be a
“commercial” email is broadly defined and the potential
penalties are very large (up
to $10 million). The requirements under the CASL are
different and broader than
those under the U.S. “CAN
SPAM” law. In addition, the
CASL applies not only to
email, but also to text messages, and certain other elecSee Anti-spam, Page 2
2
CATA Bulletin
Congratulations!
Five area Ford dealerships provided outstanding
customer service in 2013, earning them a President’s
Award from Ford Motor Co. Arlington Heights
Ford won the award for a record 25th straight year.
Other winners include Bull Valley Ford (Woodstock),
Buss Ford (McHenry), Fair Oaks Ford (Naperville),
and Wickstrom Ford (Barrington). Two area Lincoln
franchises also won a President’s Award: Buss Lincoln
(McHenry), and Wickstrom Lincoln (Barrington).
Seven area dealerships won the 2014 Stellar Care
Award, the highest honor for Subaru retailers: Evanston Subaru, Skokie; Gerald Subaru of North Aurora; Grand Subaru, Bensenville; Gary Lang Subaru,
McHenry; Liberty Subaru, Libertyville; Napleton’s
Schaumburg Subaru; and Roto Subaru, Arlington
Heights.
Profit
Continued from Page 1
transactions, consumers surveyed responded that they would
be willing to “tip” them 8 percent on a sale.
“The TrueCar Buyer Study results show that fear and mistrust have a cost in the car-buying process,” said Scott Painter, TrueCar founder and CEO. “If consumers believed that
they were getting information that they could trust as part
of a more transparent process, they would be willing to pay
dealers more.
“These survey results are consistent with the idea that increased transparency in the car-buying process can result in
higher margins for dealers and greater consumer satisfaction.
With upfront and transparent information, everyone wins.”
The TrueCar Buyer Study was conducted in February
2014 and surveyed more than 3,000 consumers across the
U.S. The objective of the survey was to identify consumers’
perspectives regarding perceived profits made by car dealers
with questions aimed at determining what consumers believe
a fair profit would be.
The survey showed that roughly one-quarter of car buyers
feel that they overpaid for their purchase and that 32 percent
of car buyers stated that they would not return to the same
dealership due to low customer satisfaction with the purchase
process. The survey was executed by Strategic Vision.
Anti-spam
Continued from Page 1
tronic messages sent to Canadian email addresses, including
those sent via social media, blogs, or other electronic communications platforms.
There are a number of exceptions as well as questions
about the applicability of the new law to entities outside of
Canada.
July 7, 2014
Marketplace
Finance Director Solid track record in increasing
product sales while securing customer loyalty, forging
strong relationships with external business partners. Exceptional mentor and coach; combine business acumen
with innate leadership abilities to recruit, build, retain
top-performing lending institutions. Daniel Martino,
(630) 917-1410.
Webinars
Continued from Page 1
and 2015. A presentation for U.S. dealerships only.
Most would agree that the provisions of the Affordable
Care Act, so far, have presented a moving target. To avoid
putting your dealership or group in compliance jeopardy,
you and your managers need to understand the “final/current” version and how that impacts auto dealerships, especially over the next six months.
Kelli Personette, a health care reform consultant for
American Fidelity, presents a summary of what car dealers
need to know about the ACA and its impact on their dealership organization.
Premiering Thursday, July 17 at 12 p.m. CDT
“A Scientifically Proven & New Look at Fixed Ops
Pay Plans” Traditional fixed ops pay plans reward average
performance and, in fact, promote mediocrity. Better to use
Key Performance Indicators to change behavior (process) to
produce the gross profit goals desired, argues Ray Branch,
the webinar presenter.
KEEPS’ data and research show that traditional service
department pay plans are not driving the correct human
behavior, the behavior or process needed to achieve the desired gross profit targets. Visit with Branch as he describes
a scientifically proven way to motivate your service staff to
new levels of performance.
Learn the principles behind behavior/process management
focused pay plans. These principles will convince you to
junk the old traditional methods of rewarding strictly on a
financial performance model. There is a better way.
  The CATA Bulletin is published by the
Chicago Automobile Trade Association
18W200 Butterfield Rd. Oakbrook Terrace, IL 60181-4810
The CATA Bulletin is distributed via blast e-mail every other Friday
except during the Chicago Auto Show, when it is not produced.
Listings of items for sale are subject to the approval of the CATA.
Candidates for employment must submit a full resume to the Editor.
Review past editions dating to 1998 or search by subject at
www.cata.info.
David E. Sloan
Erik K. Higgins
President, Publisher
Editor, Director of Dealer Affairs
CATA Bulletin
July 7, 2014
3
The dealer franchise network: A good deal for everyone
By Mark Scarpelli
Metro Chicago NADA Director
Price Competition. Public Safety.
Greater Convenience for American
Consumers. We’ve said this before
but now we’re showing everyone
why new-car dealers are vital to the
economy and to their local communities.
The National Automobile Dealers Association has launched a major
“Get The Facts” initiative. Aimed at
the media, opinion leaders and policymakers, the campaign promotes
the benefits of franchised auto dealers and provides key facts about our
businesses. The NADA has rolled
out a variety of multimedia resources
and an informative new webpage,
www.nada.org/GetTheFacts.
The centerpiece is a must-see
animated video, “A Good Deal for
Everyone,” that details the value of
franchised dealers in the car buying
process — including the significance
of performing warranty and safety
recall work.
We’re also highlighting the
economic engine that is the dealer
franchise network. There are 17,700
new-car dealerships with nearly 32,000
domestic and international franchises
across every state in the country which
employ more than 1 million people.
At a time when some automakers,
notably Tesla, are attempting to sell
their vehicles directly to consumers,
there have been many misconceptions
about the dealer business. The NADA’s
“Get The Facts” initiative sets the
record straight about who we are and
what we do.
And despite some misinformation
that has surfaced over the last several
months, franchised new-car dealers
provide the best, most efficient and
most cost-effective way to sell and distribute new cars in America, and we’re
proud of our businesses and business
model.
The NADA’s efforts will set the record straight about the benefits of the
dealer franchise network for consumers, manufacturers and local communities everywhere. Franchised new-car
dealers benefit consumers through
price competition, accountability on
warranty and safety recall issues, and
provide enormous economic benefits
10 must-have technologies for new cars
A list of the hightech features that newcar buyers say they
must have includes
four features that
could be categorized
as infotainment and
two that clearly are
safety features.
While some of the
features are not as new
as one might think,
considering that the
average car these days
is more than 10 years
old, there are plenty of
drivers for whom the
high-tech features are,
indeed, brand new.
The editors at Kelley Blue Book compiled a list of 10
“must-have” features
from a survey of consumers conducted in
the fourth quarter of
2013. The most desired
feature, by 43 percent
of respondents, was
availability of USB/
auxiliary ports. That’s
hardly cutting edge
technology, but it is
basic, allowing driv-
ers and passengers to
at least charge their
mobile devices while
they are riding. It also
is standard equipment
on most compact and
larger cars.
Vehicle diagnostics
ranked second in the
survey, at 40 percent,
and
back-up/blind
spot cameras tied with
Bluetooth for third in
the rankings at 39 percent. Bluetooth supports hands-free calling, and texting and is
to local communities across the
country.
Indeed, the dealer franchise network is supported by automakers as
the best and most efficient way to
buy, sell and service cars in the marketplace.
The “Get The Facts” initiative
highlights four central benefits of
franchised auto dealers, which include:
Price Competition New-car dealers compete fiercely for business and
drive consumer prices down;
Consumer Safety New-car dealers take the side of consumers in
warranty and safety recall situations;
Local Economic Benefits Newcar dealers create well-paying local
jobs and generate significant tax
revenue that have a huge impact on
local economies; and
Added Value New-car dealers
simplify an otherwise complex carbuying experience.
We’re making sure that the carbuying public — along with everyone
else — understands that what we do
is A Good Deal for Everyone.
Feature
Deemed “essential”
USB/auxiliary port
Vehicle diagnostics
Back-up/blind-spot camera
Bluetooth
Premium sound system
Recall advisor
Driving directions
Stolen car recovery/immobilization system
Collision sensor
Satellite radio
available as standard
equipment on most
compact and larger
cars. Blind-spot and
back-up cameras rarely are standard equipment but are available
43%
40%
39%
39%
33%
33%
28%
26%
25%
21%
as options.
Many automakers
already
incorporate
some of the safety
technologies into their
new cars, but at relatively steep prices.
CATA Bulletin
4
July 7, 2014
Franchised New-Car Dealers in the 8-county CATA area as of 1 July 2014
Car Line
Acura
Alfa Romeo
Aston Martin
Audi
Bentley
BMW
Bugatti
Buick
Cadillac
Chevrolet
Chrysler
Dodge
Ferrari
Fiat
Ford
GMC
Honda
Hyundai
Infiniti
Jaguar
Jeep
Kia
Lamborghini
Land Rover
Lexus
Lincoln
Lotus
Maserati
Mazda
McLaren
Mercedes
Mini
Mitsubishi
Nissan
Porsche
Ram
Rolls-Royce
Scion
smart
Sprinter
Spyker
Subaru
Toyota
Volkswagen
Volvo
# of Car lines
# of Outlets
Chicago
only
Ill.
1
1
0
1
1
1
1
2
1
4
3
4
0
1
3
1
4
2
1
1
3
1
1
1
1
1
0
1
0
1
1
1
0
2
0
4
1
4
0
1
0
1
4
2
1
65
33
Rest of
Cook Cty.
Ill.
4
1
0
3
1
4
0
9
8
15
10
11
0
2
13
9
10
10
4
3
10
8
0
3
4
6
0
1
7
0
5
2
5
12
3
11
1
11
2
3
0
5
11
7
4
239
158
Lake
Cnty.
Ill.
2
0
1
1
0
1
0
1
2
5
4
4
1
1
6
1
3
4
1
1
4
3
0
1
1
3
1
1
3
1
1
1
1
3
1
4
0
3
0
1
0
2
3
3
1
81
50
DuPage McHenry
Cnty.
Cnty.
Ill.
Ill.
3
0
1
2
1
3
0
4
2
6
4
4
1
1
7
4
2
3
2
2
4
3
0
2
2
2
0
2
3
0
2
1
2
4
1
4
0
4
0
0
0
2
4
4
1
99
64
0
0
0
0
0
1
0
4
1
4
3
3
0
0
3
3
1
1
0
0
2
1
0
0
0
1
0
0
1
0
0
0
1
1
0
3
0
1
0
0
0
1
1
1
0
38
18
Kane
Cnty.
Ill.
0
0
0
0
0
0
0
1
0
4
3
3
0
0
4
1
2
1
0
0
3
1
0
0
0
0
0
0
0
0
1
0
0
1
0
3
0
1
1
1
0
1
1
0
0
33
21
Will
Cnty.
Ill.
0
0
0
0
0
0
0
3
1
6
2
2
0
0
5
2
1
1
0
0
2
1
0
0
0
0
0
0
1
0
0
0
1
1
0
2
0
1
0
0
0
1
1
1
0
35
19
Lake
Cnty.
Ind.
1
0
0
1
0
1
0
2
1
4
3
3
0
1
4
2
2
2
1
1
3
2
0
0
1
1
0
0
1
0
1
0
1
2
0
3
0
2
0
0
0
1
2
2
1
51
33
Porter
Cnty.
Ind.
0
0
0
0
0
0
0
3
0
2
2
2
0
0
2
2
0
0
0
0
2
1
0
0
0
0
0
0
1
0
0
0
1
1
0
2
0
1
0
0
0
1
1
0
0
23
16
Total
[prior]
1/1/2014
11
0
2
8
3
11
1
29
16
50
34
36
2
4
47
25
25
24
9
8
33
21
1
7
9
14
1
3
17
0
11
5
12
27
5
36
2
28
3
0
1
15
28
20
8
651
407
Total
[present]
7/1/2014
11
2
2
8
3
11
1
29
16
50
34
36
2
6
47
25
25
24
9
8
33
21
1
7
9
14
1
5
17
2
11
5
12
27
5
36
2
28
3
6
0
15
28
20
8
664
412
NOTE: The difference between car line and outlet figures is the result of outlets that handle more than one car line. The increases this period largely
stem from the additions of Alfa Romeo, McLaren and Sprinter; and from increases of Fiat and Maserati franchises.